AUD/USD –  The Pair May Go Down to the Lowest Price Level of March

Short Position

Sell Stop   : 0.6560

Take Profit: 0.6700

Timeline: 1-2 days

Long Position

Buy Stop  : 0.6750

Take Profit: 0.6850

Stop Loss : 0.6685

The pair appeared to be locked in a sluggish upward trend over the past two weeks, so there isn’t much movement on the charts. Additionally, the pair established an orange ascending channel pattern. On Tuesday, we noticed the pair moving to the downward side of the trend. The pair is currently clinging to the 50-period MA as the MACD and signal lines produced a bearish crossover formation. Prior to the release of the NFP data, we may anticipate the pair to decrease and rest at the March level. 

The RBA’s decision to halt interest rate hikes that have been ongoing for some time is the most significant development in relation to the Australian Dollar pair. Since May of last year, there have been continuous rate increases. According to reports, the high inflation and swift rate increases are to blame for the slump in the Australian economy. Therefore, the temporary halt in rate hikes is intended to give the economy some time to recover. 

The pair also responded to the hawkish remarks made by Loretta Mester, the head of the Cleveland’s Federal Reserve who stated her support for rate increases due to the high levels of inflation in the economy. However, it is difficult to predict the actions the Fed will take at its upcoming meeting. The Bank has made it clear that the important economic data releases will have an impact on their choices, so we must keep an eye out for these as well.